Banks sell off large part of loans supporting Musk's 2022 acquisition of Twitter - Reuters
Investing.com -- Leading banks, including Morgan Stanley (NYSE: MS ), Bank of America, Barclays (LON: BARC ), Mitsubishi UFJ (NYSE: MUFG ), BNP Paribas (OTC: BNPQY ), Mizuho (NYSE: MFG ), and Societe Generale (OTC: SCGLY ), have sold a substantial portion of the $13 billion debt that backed Elon Musk's acquisition of Twitter, now known as X, in 2022, according to Reuters, citing a knowledgeable source.
On Thursday, these banks completed the secondary sale of $4.74 billion worth of secured loans set to mature in October 2029. The loans, which paid a fixed rate yield of 9.5%, were priced at par or 100 cents to the dollar, the source disclosed. This loan sale was an increase from the initial $2.97 billion.
With this recent sale, the banks have almost entirely offloaded the $13 billion debt they have carried on their books for almost two years.
The X acquisition in 2022 was financed by a combination of a $6.5 billion secured term loan, a $500 million revolving credit facility, a $3 billion unsecured loan, and $3 billion of secured loans.
The timeline for the sale of the remaining $1.3 billion in unsecured loans still held by the banks remains uncertain, the source added.
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